Fortress Minerals Corp.
TSX VENTURE : FST

Fortress Minerals Corp.

December 21, 2006 20:00 ET

Fortress Announces Cdn $13.2 Million Private Placement Closed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 2006) - Fortress Minerals Corp. ("Fortress" or "the Company") (TSX VENTURE:FST) reports that it has completed the private placement announced on December 13, 2006. The Company sold on a non-brokered, private placement, basis 11 million common shares of the Company at a price of Cdn $1.20 per share for gross proceeds of $13.2 million. A 4% finders fee is payable on a portion of the private placement. Net proceeds of the private placement will be used primarily towards its ongoing exploration program on the Svetloye gold project in Russia as well as for general working capital purposes. The shares issued pursuant to the private placement will be subject to a hold period which expires on April 22, 2007. The private placement has received regulatory approval and the securities have been issued to the investors.

Fortress Minerals Corp. is a publicly held Canadian base and precious metal exploration company listed on the TSX Venture Exchange under the symbol "FST". The Company's projects are located in Russia, Mongolia and Nicaragua. In Russia, Fortress is focused on the Svetloye gold project located in the Russian Far East. The project is approximately 750km west of Magadan, Russia, close to the port of Okhotsk. Fortress can earn up to an 80% interest in the Svetloye project from Phelps Dodge. Phelps Dodge was active at Svetloye for two field seasons (2003 and 2004) and identified a 7 square kilometer zone of epithermal gold mineralization. Twenty-eight drill holes (3,687m) and approximately 550m of surface trenching by Phelps Dodge had identified seven key targets within the Svetloye license: Elena, Larissa, Tamara, Gorki, Ludmilla, Bill and Amy. Fortress has initiated an aggressive trenching and drilling program to further evaluate the project.

ON BEHALF OF THE BOARD

Ron F. Hochstein, President

This News Release contains forward-looking statements concerning the Company's plans for its principal property in Russia. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of its principal property in Russia, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described in the Company's periodic filings with the British Columbia Securities Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Fortress Minerals Corp.
    Sophia Shane
    (604) 689-7842